Musk quits DOGE, Tesla shares rise
Tesla and SpaceX CEO Elon Musk has officially left DOGE, a cost-cutting program launched during the Trump administration
On May 29, Musk announced his resignation on X (original Twitter), and his 130-day special government employee term will end on May 30. In his statement, he thanked the president for the opportunity to reduce waste, but also admitted that improving the efficiency of the federal bureaucracy is an uphill battle
The resignation comes at a time of increasing legal pressure. Previously, attorneys general in 14 states filed a lawsuit accusing Musk and DOGE of illegally interfering in federal operations, including unauthorized access to data systems, firing federal employees and canceling contracts. A White House official said Musk's resignation met legal requirements
At the same time, Tesla revealed in its latest financial report that it would withdraw from Dogecoin (DOGE)-related businesses, pushing its stock price up 5% after hours, despite the company's net profit falling 80% year-on-year
As of the end of March, Tesla still held 11,509 bitcoins, worth about $1.24 billion, showing its continued bet on cryptocurrencies. However, Tesla's stock price is still down 5.9% so far this year, in line with the trend of technology giants such as Apple and Nvidia.
Analysts believe that Musk's focus on Dogecoin may distract investors from Tesla's core business, but supply chain issues and market environment are also factors.
